US Treasury Secretary Janet Yellen held a meeting with CEOs of major banks on Thursday, CNN reported.
At this meeting, Yellen met with Jamie Dimon, CEO of JPMorgan Chase, Jane Fraser, CEO of Citigroup, and other board members of the Bank Policy Institute.
Addressing the banking crisis at this meeting, Janet Yellen told CEOs that more bank mergers may be necessary, noting that the banking industry is going through and continues to go through a crisis.
More than one big bank went bankrupt in 2023. This led to lower stock prices and concerns that regional and medium-sized banks could also go bankrupt.
The informants told CNN:
“Yellen and US regulators consider the ongoing banking crisis to be the worst banking crisis since 2008.
Regulators prefer mergers, in which strong banks take over weaker ones, rather than destabilizing bank failures.
Because regulators think that more banks may go bankrupt in the future, and more mergers may be needed in this context."
In a statement after the meeting, the Treasury Department said Yellen emphasized the strength and soundness of the US banking system and thanked famous bank CEOs for their leadership and support.
But those who spoke to CNN said Yellen discussed bank mergers with bank CEOs at the meeting.
Yellen's Reuters interview was also included in the news. "This may be an environment where we will see more bank mergers," Yellen told Reuters.
During this news from CNN, Fed chairman Jerome Powell was speaking at a conference.
In this speech, Powell stated that the interest rates may not be increased further due to the tightening of credits in banks.
Yellen's signaling of a new banking crisis, and Powell's positive statements about interest rates, increased the sales in the Dollar Index and brought Bitcoin and gold to rise.
In the market, where volatility increased before the weekend, the price reversed its reaction and decreased to $ 26,800 again.
*Not investment advice.